FKI Accelerates Win-Win Growth Projects... Heo Chang-soo: "Collaboration Between Companies Is True Coexistence"

Huh Chang-soo, Chairman of the Federation of Korean Industries, is attending a meeting with President-elect Yoon Seok-yeol and the heads of six economic organizations at the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul on the 21st, delivering a greeting./Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Jin-ho Kim] The Federation of Korean Industries (hereinafter FKI) is actively supporting the resolution of management difficulties and strengthening competitiveness of small and medium-sized enterprises (SMEs) through the Management Advisory Group project (Management Doctor System), which is being promoted as part of the win-win growth initiative.

On the 13th, Chairman Huh Chang-soo visited TOS Co., Ltd., a semiconductor inspection equipment manufacturer located in Osan-si, Gyeonggi-do, and emphasized, "Since the new government has launched, private sector-centered economic policies are being implemented, and the 'FKI Management Doctor System,' where large corporations, SMEs, and the management advisory group collaborate, is a model case of coexistence." He added, "The advisory members of the management advisory group are people who have acquired management systems while working in large corporations. As companies grow, system establishment is essential, so I hope SMEs can utilize their know-how to enhance their capabilities."

TOS is a company that develops, manufactures, and supplies semiconductor·display equipment parts. It holds patents for original technology of ultra-high-speed multi-channel plasma detection devices. It is also a strong small and medium-sized enterprise with outstanding technology in the industry, having developed the world's first detection module used in semiconductor ALD processes.

Kim Yong-gyu, CEO of TOS, who is driving the company's growth aiming to become a global semiconductor parts specialist, gained confidence to attempt an initial public offering (IPO) after seeing many technology companies grow into mid-sized companies through listing. He applied for the FKI Management Doctor System together with Semes, a cooperating large corporation.

Afterwards, Advisory Member Jo Yeon-gyu of the FKI Management Advisory Group and CEO Kim reviewed various KOSDAQ listing systems and procedures and concluded that the IPO using the technology special listing system was the most suitable for TOS. First, to meet the special listing requirements, they decided to find investors to increase capital (1 billion KRW) and pursue a technology evaluation (grade A or higher) from a professional evaluation agency.

Advisor Jo believed that TOS would have no difficulty meeting the special listing requirements and going public around 2024. However, he advised that while meeting the requirements is basic, it is more important to have systems befitting a listed company to properly evaluate corporate value, meaning internal and external indicators must improve. He pointed out that foundational work for the IPO is important, but without supported performance, it is meaningless.

Accordingly, TOS changed its financial statements, which had been based on general corporate accounting standards, to Korean International Financial Reporting Standards (K-IFRS) and underwent an accounting audit by an external auditor. They are strengthening their foundation by upgrading the existing ERP program (SAP) to implement daily closing and establishing a cost management system.

CEO Kim said, "SMEs have weak human resources, and when the CEO focuses on solving current issues, there is little time to consider future plans. Thanks to the support from FKI and Semes, we were able to overcome the limitations of SMEs and prepare for the future."

The FKI SME Cooperation Center plans to further strengthen the Management Doctor System program from 2022 to establish a new win-win growth collaboration model. In addition to providing medium- to long-term advisory services, it will support education and consulting to spread ESG management among partner companies. Furthermore, in cooperation with large corporations, it plans to provide partner company education to respond to current issues such as the Industrial Safety and Health Act and the Serious Accident Punishment Act.

Meanwhile, since its launch in 2004 with 40 former CEOs and executives from major groups such as Samsung, Hyundai Motor, LG, and SK, the FKI Management Advisory Group has provided 23,462 consultations to 11,151 companies. Over the past 15 years, the FKI Management Doctor System has involved 75 large corporations including Samsung Electronics, LG Electronics, and POSCO, and 771 partner companies.